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September 11, 2013 at 09:58 AM
U.S. insurers spent an aggregate $1.21 billion on residential mortgage-backed securities issued by 18 trusts in the first half of 2013, new research reveals.
SNL Financial discloses this finding in a report based on quarterly statutory statements filed by the insurers with the National Association of Insurance Commissioners. The transactions appear in Schedule D, Part 3 of the quarterly statements.
Two life insurers, Sammons Enterprises and Northwestern Mutual, made the largest purchases of new private-label (non-agency) RMBS, the amounts totaling $165.8 million and $128.6 million respectively. Four other life insurance companies — MetLife Inc., Guggenheim Capital LLC, Western & Southern Financial Group and Ohio National Mutual Holdings — are also among the top 10 RMBS buyers in the first half of 2013:
| Company |
Sector |
Actual cost of purchase ($M) |
Net admitted bonds ($M) |
Ratio of cost of purchase to net admitted bonds (%) |
| Sammons Enterprises Inc. |
Life |
$165.8M |
$39,175.0 |
0.42 |
| Northwestern Mutual Life Insurance Co. |
Life |
128.6 |
120,153.1 |
0.11 |
| Motors Insurance Corp. & affiliates |
P&C |
97.5 |
1,820.2 |
5.35 |
| MetLife Inc. |
Life |
82.0 |
209,400.3 |
0.04 |
| Travelers Cos. Inc. |
P&C |
79.6 |
57,269.5 |
0.14 |
| Guggenheim Capital LLC |
Life |
69.7 |
14,977.1 |
0.47 |
| Western & Southern Financial |
Life |
60.8 |
23,844.5 |
0.26 |
| Ohio Nat’l Mutual Holdings |
Life |
44.4 |
6,520.6 |
0.68 |
| Amerisure Mutual Insurance Co. |
P&C |
37.6 |
1,450.4 |
2.59 |
| CNA Financial Corp. |
P&C |
36.3 |
33,917.5 |
0.11 |
The report shows that a combined 25 insurers accounted for $1.1 billion of the purchases. Other life insurers buying more than $20 billion in RMBS in the first half of 2013 included:
Genworth Financial ($30 billion)
Country Financial ($26.2 billion)
Reinsurance Group of America ($25.3 billion)
